Craig Manufacturing Case Study Solution and Analysis
Intro
Craig Manufacturing Case Study Solution is the biggest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information company and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific obstacles to the publishing market in basic and Craig Manufacturing Case Study Help in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Craig Manufacturing Case Study Solution has specific strengths that can be made use of to minimize the hazards, overcome the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Craig Manufacturing Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost using its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the company to consider a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the company has particular weak points which could increase restraints for the business in implementing its advancement program. The weaknesses of Craig Manufacturing Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, affecting Craig Manufacturing Case Study Solution as well, but the growth could be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge funds.
Risks
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed specific threats to Craig Manufacturing Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Craig Manufacturing Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using specific techniques like aggressive promotion, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competitors increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the annual overall profits of Craig Manufacturing Case Study Analysis during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the business is quite effective in attracting a large number of consumers at a possible price.
Along with it, the 2nd graph which shows the yearly development in the Craig Manufacturing Case Study Solution total assets, reveals that the business is quite efficient in including worth to its assets through its revenues. The growth in assets reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information might be the analysis concerning the distribution of total revenues of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service sections with a potential growth to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Craig Manufacturing Case Study Solution service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Craig Manufacturing Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to draw in new entrants to the publishing industry. The existence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the published files is the files provided in the virtual libraries on certain websites. The changing consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Craig Manufacturing Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Craig Manufacturing Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Craig Manufacturing Case Study Analysis and CIP. It is also one of the popular players in the publishing market with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an instant service to prevent the declining market growth. The company might likewise think about the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company must first collects the data related to the consumer need, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the preliminary offering proves a success, the company needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a hazard to the company's long term existence, however the scenario can be managed by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entryway in the new markets.
